Parsons Village housing project developers in Easthampton hope to win grant from Department of Housing and Community Development

This is an aerial view of the New City neighborhood, including where Parsons Village could be built (circled in red).Douglas Niedzwecki

EASTHAMPTON - The Northampton-based Valley Community Development Corp. submitted its application for funding last month for the Parsons Street project and expects to hear perhaps by February whether money is available.

The Zoning Board of Appeals approved the 38-unit affordable housing project in September with 37 conditions. No one appealed the decision.

The developer had submitted a pre-application for funding to the state Department of Housing and Community Development in August and was invited to submit a full application due Oct. 12. Campbell said the corporation has applied for funding before but did not have the permits.

As part of the application, the corporation could tell the state there was no appeal and present letters of interest from underwriters as well as the $200,000 from the city in Community Preservation Act money. “They want evidence of local support,” she said.

“It’s a good project a good community. Demonstrated need.” But there are a back-log of good projects,” she said. “We’re hoping.”

If the $12 million project receives state money in the form of tax credits, it would then take several months to line up all the all the pieces. The earliest the corporation could start work would be in September, she said, with the project opening in September of 2014.

If it doesn’t receive funding in this round, the corporation will apply again, but that would push the project back.

She’s not sure when the next funding cycle is.

The Planning Board rejected the project in 2011, but the developer sought a comprehensive permit that allows the Zoning Board of Appeals to approve affordable housing with more flexible rules - essentially to circumvent local zoning - when tless than 10 percent of a community's housing stock is affordable. Just 6 percent of the city's housing is affordable, according to May 2012 data.

Some in the neighborhood opposed the project saying it was too dense for their neighborhood, but they said the nature of a comprehensive permit made it hard to appeal.

In September, neighbor Kirsten Morra said, "There would have to be an overwhelming health and safety concern" for a viable appeal.